The boom real estate market in London is over.
At the beginning of 2017, it was becoming apparent that the London real estate market was significantly undervalued relative to the Greater Toronto Area. Reliable high-speed internet allowed many to escape the GTA so as to get much greater value for their house buying dollar. There was also a fair number of retirees who cashed in Toronto and came to London, taking advantage of the value differential and the availability of many detached one floor condominiums. By the middle of 2021, the London real estate market seemed like it might be finding its balance point relative to the GTA.
Then, as 2021 closed out and 2022 began, a strange thing happened. A combination of demand remaining strong, local sellers who might be looking to buy and sell getting nervous, and a mild winter that did not prevent travel from the GTA to London, resulted in a supply and demand imbalance leading to a steep, unsustainable increase in the price of detached homes. In February 2022, the price of a detached home in London reached the stratospheric average sale price of $961,701. This price level was unsustainable, and a correction was coming.